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Updated: 52 min 59 sec ago

Switch shares drop after first earnings report since IPO

Mon, 11/13/2017 - 16:45

Switch Inc. shares fell in the extended session Monday even after the data-center company's quarterly results--their first as a public company--topped Wall Street estimates. Switch shares fell 4.6% to $19.10 after hours, following a 5.7% gain to close the regular session. Shares had soared more than 20% above their $17 initial price on the day of Switch's early October IPO, and have since traded as high as $24.90. The company reported third-quarter net income of $16.5 million, or 8 cents a share, compared with $15.9 million, or 8 cents a share, in the year-ago period. Revenue rose to $97.7 million from $81.7 million in the year-ago period. Analysts surveyed by FactSet had estimated 7 cents a share on revenue of $95.8 million. For the full year, Switch estimates revenue of $372 million to $380 million. Analysts expect revenue of $374.4 million.

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Buffalo Wild Wings stock soars after report of acquisition bid

Mon, 11/13/2017 - 16:42

Buffalo Wild Wings Inc. shares shot more than 25% higher in late trading Monday after a report that a private-equity firm had bid more than $2.3 billion for the restaurant chain. The Wall Street Journal reported that Roark Capital Group made an offer of more than $150 a share for the company in recent weeks. The stock closed Monday at $117.25, then jumped to $150 in after-hours action following the report. The franchise has been hurt by increasing prices for its core product, chicken wings, and had been targeted by activist investor Marcato Capital Management, but bounced back in the most recent quarter by switching one of its most popular promotions to boneless wings.

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Amazon device pop-up shops debut in Whole Foods stores

Mon, 11/13/2017 - 16:16

Amazon.com Inc. opened the first of its device pop-up shops in Whole Foods Market locations on Monday in Chicago and Rochester Hills, MI. On Tuesday, shops will open in Davie, FL and Pasadena, CA, and on Wednesday, stores will open in the Union Station store in Denver. An Amazon spokesperson said the company does not have an end date for the pop ups to share. Amazon began selling Amazon devices like the Echo, Fire TV and Kindle e-readers at more than 100 Whole Foods stores last week. Amazon shares are up more than 50% for the year so far while the S&P 500 index is up 15.5% for the period.

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Why GE had the worst day since 2009 but the Dow industrials still ended in the green

Mon, 11/13/2017 - 16:15

General Electric record its worst daily decline since April 2009 but that didn't stop the Dow Jones Industrial Average from booking a gain on Monday. That's because the the more than 7% drop in shares of GE , the 125-year-old conglomerate, equates to about a 10-point drop in the price-weighted Dow . In other words, a $1 move in anyone of the Dow's 30 components equates to a 6.89-point swing in the equity benchmark. That price weighting places emphasis on a company's share price-- $19.02 for GE- rather than, say, market value. GE boasts a market value of about $165 billion, after shedding about $10 billion in Monday trade. It also is the worst performer so far this year among the Dow's components. GE's downturn on Monday, however, was outweighed by gains in McDonald's Corp. , Home Depot Inc. and Boeing Co. , which all trade at a share price well over $100. GE's decline come as the company undergoes a drastic restructuring, including cutting its divided in half, under new CEO John Flannery. Overall, the Dow ended the session up about 17 points, or 0.1%, at 23,439, snapping a two-session skid. The S&P 500 index gained 0.1% at 2,584, while the Nasdaq Composite Index advanced 0.1% at 6,757.

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U.S. stocks close slightly higher, tax-cut worries cap upside

Mon, 11/13/2017 - 16:03

U.S. stocks closed slightly higher on Monday, with the main indexes attempting to rebound from the first weekly loss in two months last week. However, investors remained reluctant to bid up prices amid continuing concerns surrounding the Republican tax legislation. The S&P 500 closed 2.54 points, or 0.1%, higher at 2,584.84. The Dow Jones Industrial Average was up 17.42 points, or less than 0.1%, to 23,439.63. The tech-heavy Nasdaq Composite index gained 6.66 points, or 0.1%, to 6,757.60. Among the worst performers on Wall Street, shares of General Electric Co dropped nearly 8% after the company halved its dividend and provided a downbeat profit outlook for next year.

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Amazon's stock surges toward 38th record close of the year

Mon, 11/13/2017 - 14:37

Shares of Amazon.com Inc. surged 1.2% in afternoon trade toward its 38th record close of 2017, after the ecommerce giant said it acquired the TV rights to "The Lord of the Rings" for a multi-season series. The stock has how rocketed $166.30, or 17.1%, since Amazon reported third-quarter results, which has increased Amazon's market capitalization by about $80.1 billion to $548.7 billion. That makes Amazon the S&P 500's fourth-most valuable company, behind Apple Inc. at $894.8 billion, Google parent Alphabet Inc. at $722.9 billion and Microsoft Corp. at $646.8 billion, and ahead of Facebook Inc. at $520.0 billion.

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U.S. shale oil output expected to rise by 80,000 barrels a day in December: EIA

Mon, 11/13/2017 - 14:15

Shale crude-oil production from seven major U.S. oil plays is expected to see a monthly climb of 80,000 barrels a day in December to 6.174 million barrels a day, according to a report from the Energy Information Administration released Monday. The report has forecast increases in shale-oil output every month so far this year. Oil output from the Permian Basin, which covers parts of western Texas and southeastern New Mexico, is expected to see the largest climb among the big shale plays, with an increase of 58,000 barrels a day. December West Texas Intermediate oil rose 7 cents, or 0.1%, to trade at $56.81 a barrel, a few minutes before the settlement on the New York Mercantile Exchange.

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Medical translation training institute Mitio files for $10 million IPO

Mon, 11/13/2017 - 13:57

MiTio Inc., a medical interpreting and translation training institute, on Monday filed for an initial public offering that will raise $10 million. The company filed a Regulation A form, a provision of the Jumpstart Our Business Act, or JOBS Act, that helps smaller companies tap the public markets. MiTio is offering 5 million shares at $2 a pop. The McDonough, Georgia-based company offers a certificate/diploma program in interpreting and translation. Proceeds of the deal will be used to expand growth, for marketing and to hire sales reps, according to the company's prospectus. The company is not planning to list the shares on an exchange and its two principal officers will retain majority stakes. MiTio was incorporated in Delaware in May of this year. The company will sell the shares on a "best effort" basis and is not planning to use underwriters.

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Madison Square Garden's stock turns lower after Chairman Dolan assumes interim CEO role

Mon, 11/13/2017 - 13:51

Shares of Madison Square Garden Co. turned lower in afternoon trade Monday, after the live sports and entertainment company (MSG) said Chief Executive David O'Connor was stepping down, effective immediately, after 2 1/2-years in the role. The company did not give an explanation. MSG said Executive Chairman James Dolan has assumed the additional role of interim CEO. Dolan has been executive chairman of MSG since March 2015, and is also executive chairman of MSG Networks Inc. , since July 2009. MSG's stock was down 0.9% in recent trade; it was about flat just before the CEO transition announcement. MSG's stock has run up 33% year to date, while MSG Networks shares have tumbled 22% and the S&P 500 has gained 15%.

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CME CEO says futures exchange for bitcoin will be ready 2nd week of December

Mon, 11/13/2017 - 13:27

CME Group CEO Terry Duffy said futures contracts pegged to bitcoin on its exchange could be ready as soon as the second week of December. The CME boss made his comments during a Monday interview on CNBC, where he also discussed the inherent volatility in the worlds' No. 1 digital currency, which has seen its value soar in value in 2017, fueling outsize interest from average investors and Wall Street players alike. Bitcoin has soared more than 500% year to date, compared with a roughly 15% climb for the S&P 500 index , an 18% rally for the Dow Jones Industrial Average , so far in 2017, and a nearly 26% return for the Nasdaq Composite Index over the same period. The CME kicked off a product to reference bitcoin prices a year ago, and late last month announced a plans to launch futures contracts, which could pave the way for investment funds and other investors to make big bets on the vagaries of the popular, and very volatile, cybercurrency.

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Amazon acquires television rights to 'Lord of the Rings'

Mon, 11/13/2017 - 13:16

Amazon.com Inc. said Monday that it has acquired the television rights to J.R.R. Tolkien's "The Lord of the Rings" fantasy stories for a multi-season series. "The Lord of the Rings" have been made into award-winning movies directed by Peter Jackson. The series will delve into new storylines that precede "The Fellowship of the Ring," and the deal could include spin-offs. Amazon shares are up 1.2% in Monday trading, and up 54% for the past year. The S&P 500 index is up 19.4% for the last 12 months.

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Dow, S&P 500 gains belie bad market breadth

Mon, 11/13/2017 - 13:15

Although the Dow Jones Industrial Average and S&P 500 are gaining ground, internal market data shows breadth is fairly negative, particularly on the NYSE. The number of declining stock outnumbered advancers by a 1,643-to-1,184 score on the NYSE and by a 1,486-to-1,210 margin on the Nasdaq exchange. The volume of declining stocks was represented 63.2% of total volume on the NYSE, according to FactSet, and 45.9% of the total volume on the Nasdaq. Meanwhile, the Dow was up 14 points and the S&P 500 was up 0.1%. The Nasdaq Composite was also up, but less than 0.1%.

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Lyft announces plan to launch in Toronto in December

Mon, 11/13/2017 - 11:14

Ride-sharing service Lyft said Monday it is planning to launch in Toronto in December in its first foray outside of the U.S. The company and Uber rival announced the news in a blog posting. "We've been looking forward to taking our brand of ridesharing international for some time," said the blog post, titled "Canada, here we come." In October, Lyft raised $1 billion in funding in a round led by the venture-capital fund of Google parent Alphabet Inc., that gave it a valuation of $11 billion. Lyft has raised $3.6 billion in funding since it launched in 2012, compared with the roughly $15 billion raised by Uber, which has a valuation of about $68 billion, according to The Wall Street Journal.

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Dow industrials pivot higher as P&G, Home Depot outweigh GE's stock slump

Mon, 11/13/2017 - 10:34

The Dow Jones Industrials Average made a morning break into positive territory, powered by shares of Procter & Gamble Co., Home Depot Inc., and Boeing Co., helping to counter a slide in General Electric's stock. Shares of P&G , Home Depot and Boeing combined to contribute about 25 points--the bulk of the price-weighted blue-chip index's morning gains. Meanwhile, GE's stock was only cutting about 5 points from the Dow, even though it is the benchmark's worst percentage performer. A $1 move in anyone of the Dow's 30 components equates to a 6.89-point swing, making a component's share price more influential than, say, its overall market value. GE was under pressure as it sought to deliver a raft of changes under new CEO John Flannery to revamp its 125-year-old business. Elsewhere, the S&P 500 index was gaining some traction in the green at 2,582. The Nasdaq Composite Index was also edging higher at 6,752. All three benchmarks cut losses from a firmer decline earlier Monday.

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Mexican economy 'resilient' given macro environment, says IMF

Mon, 11/13/2017 - 10:32

The International Monetary Fund's executive board called Mexico's economy resilient "in the face of a complex external environment," on Monday, adding that its "flexible exchange rate is playing a key role in helping the economy adjust to external shocks." Mexico's reduction of debt, shrinking deficit, and improving financial regulation were cited as among the factors that contributed to the IMF's review. This year, the Mexican economy is expected to grow 2.1% driven mainly by private consumption, while 2018 growth is projected to slow slightly before picking up steam again. The Mexican peso spiked briefly against the dollar upon the release of the report. One dollar last bought 19.1536 pesos, up 0.2% from Friday.

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Trade body rules Venezuela defaulted on bond payment

Mon, 11/13/2017 - 10:23

The International Swaps and Derivatives Association, or ISDA, ruled that a $1.1 billion principal payment for a bond issued by PDVSA, Venezuela's state-owned oil company, came too late. As the payment arrived after a three-day grace period, ISDA ruled PDVSA had triggered a so-called credit event. That opens the door to the triggering of credit-default swaps, which act like insurance against debt nonpayment. Venezuelan President Nicolas Maduro had promised the country would make the $1.1 billion payment before restructuring all of its debts. Estimates of the nation's debt burden range from $100 billion to $150 billion.

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Roku shares jump another 10% to extend gains made after blowout earnings

Mon, 11/13/2017 - 10:18

Shares of Roku Inc. surged another 10% Monday, extending gains made last week after better-than-expected earnings. Roku last week reported earnings for the first time as a public company, sending its stock price soaring. Roku believes its TV operating system - known as its platform business in filings - is the key to growth, and platform revenue reached 46% of total sales. Shares were last up $2.40 at $35.65, a full 155% above the company's IPO issue price of $14. The S&P 500 was flat Monday.

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Trump says he's nominating former Eli Lilly executive to head HHS

Mon, 11/13/2017 - 10:05

President Donald Trump said Monday he is nominating Alex Azar as the next health and human services secretary. Azar, who formerly ran Eli Lilly & Co.'s U.S. operations, would replace Tom Price at the department if confirmed. Price resigned in September amid reports he spent more than $1 million in taxpayer dollars on private plane travel. "He will be a star for better healthcare and lower drug prices!" Trump tweeted.

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GE sees biggest percentage drop in Dow, but Goldman biggest overall drag in industrials

Mon, 11/13/2017 - 09:58

Shares of General Electric were down about 3% in early Monday trade, representing the biggest weight on the Dow industrials, but Goldman's stock exacted the biggest point toll on the price-weighted gauge. Shares of GE were cutting only about 4 points from the Dow Jones Industrial Average . A $1 move in anyone of the Dow's components equates to a 6.89-point swing in the average. By comparison, Goldman Sachs Group Inc. shares were down 0.6%, or $1.45, translating to a decline of about 10 points. Most recently, the Dow was off 5 points, or less than 0.1%, at 23,416, the S&P 500 index was down 0.1% at 2,579, while the Nasdaq Composite Index was down about 0.2% at 6,739.

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GE makes EPS guidance language simpler, but stock tumbles toward 5 1/2-year low

Mon, 11/13/2017 - 09:41

General Electric Co.'s stock plunged 3.7% in morning trade Monday, putting it on track to close at a 5 1/2-year low, after its presentation to investors. As part of GE's pledge to become simpler, and given some urging by the Securities and Exchange Commission, the company changed how it changed how it refers to earnings-per-share that is comparable to analyst expectations to something investors (and reporters) are more accustomed. GE still said in its presentation to investors Monday it expected "industrial operating + vertical EPS" of $1.05 to $1.10, but also added an "adjusted EPS" outlook of $1.04 to $1.12, which compares with the FactSet consensus of $1.10. For 2018, GE only referred to its profit outlook as "adjusted EPS," of $1.00 to $1.07, which was below the FactSet consensus of $1.15. In a comment letter sent to GE, the SEC requested some explanation of "industrial operating + verticals EPS." The stock has tumbled 37.6% year to date, while the Dow Jones Industrial Average has climbed 18.3%.

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